US-based chipmaker Qualcomm is in advanced talks with Huawei to settle a patent dispute, with an agreement possible in the coming weeks, The Wall Street Journal (WSJ) reported.
The China-based equipment and handset vendor reportedly stopped making royalty payments in 2017 shortly after Apple accused Qualcomm of overcharging customers. While an agreement could be reached in the coming weeks, WSJ noted negotiations between the two companies could still break down.
Qualcomm faced accusations in South Korea and China for abusing its dominant market position due to its licensing regime: both countries imposed heavy fines and forced the company to modify its business practices and reduce royalties.
Digitimes reported in November 2017 some Android vendors were considering renegotiating their royalty agreements with the US chipmaker.
Amid the challenges to its royalty regime, Qualcomm’s licensing revenues in its fiscal Q1 2018 (the three months to 24 December 2017) fell to $1.36 billion from $1.86 billion in the comparable fiscal 2017 quarter.
The chip giant is facing a drawn-out takeover battle with Broadcom, which made its first move for Qualcomm in November 2017 and since amended its offer several times following opposition from Qualcomm’s management: the current bid stands at $79 per share.